Futures Industry Regulations (Amendment) (Cth)

Statutory Rules 1990 No. 411

Futures Industry Regulations2 (Amendment)

I, THE GOVERNOR-GENERAL of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, being advice that is consistent with resolutions of the Ministerial Council for Companies and Securities, hereby make the following Regulations under the Futures Industry Act 1986.

Dated 19 February 1990.

BILL HAYDEN

Governor-General

By His Excellency’s Command,

Gareth Evans

Minister of State for Foreign Affairs

and Trade for and on behalf of the

Attorney-General

Principal Regulations

1. In these Regulations, “Principal Regulations” means the Futures Industry Regulations.

Register of holders of proper authorities

2. Regulation 22 of the Principal Regulations is amended by adding the following subregulation:

“(2) For the purposes of paragraph 78e (3) (e) of the Act, the information specified in items 1, 2, 3 and 5 in Form 10c is prescribed.”.

Repeal of regulation 22A

3. Regulation 22a of the Principal Regulations, being a regulation inserted by Statutory Rules 1989 No. 371, is repealed.

 

(S.R. 51/90) Cat. No. 14/15.2.1990

Copy of register—prescribed amount

4. (1) The Principal Regulations are amended by renumbering regulation 22a, being a regulation inserted by Statutory Rules 1989 No. 300, as regulation 22c.

(2) A reference in an instrument to the regulation referred to in subregulation (1) is to be read as a reference to that regulation as so renumbered.

Exemptions from the provisions of Part IV of the Act

5. Regulation 38 of the Principal Regulations is amended:

(a) by omitting subregulation (1) and substituting the following subregulation:

“(1) In this regulation:

‘investment manager’ means a person:

(a) who is the holder of a dealers licence granted under Part IV of the Securities Industry Act 1980; and

(b) other than a person entering into a transaction in relation to which the provisions of Part IV of the Act do not have effect because of the operation of paragraph (2) (a), (b), (c), (d) or (e);

‘prescribed trustee corporation’ means a body corporate that is:

(a) an authorised trustee corporation within the meaning of the Companies Act 1981; and

(b) referred to in regulation 14 of the Companies Regulations;

to which the Commission has granted under subsection 167 (1) of that Act approval to act as trustee or representative for the purposes of a deed.”;

(b) by omitting from subparagraph (2) (d) (iii) “in which the company is dealing at that time” and substituting “entered into by the company”;

(c) by inserting in subparagraph 2 (e) (i) “, or by a manager appointed by the trustee,” after “the trustee”;

(d) by omitting from subparagraph 2 (e) (ii) “by the trustee”;

(e) by inserting in subparagraph 2 (e) (iii) “or manager” after “the trustee”;

(f) by omitting from subparagraph (2) (e) (iv) “in which the trustee is dealing at that time” and substituting “entered into by the trustee or manager”;

(g) by adding at the end the following paragraph and subregulations:

“(f) a transaction that is a dealing in a futures contract:

(i) entered into by an investment manager in the course of managing funds:

(a) deposited by a person (in this paragraph called ‘the client’) for the purposes of investment on

terms that permit the investment manager to effect transactions in futures contracts without prior reference to or approval of the client; and

(b) which total at least $500,000; and

(ii) executed on behalf of the investment manager by the holder of a futures broker’s licence; and

(iii) the value of which, when added to the total value of any other futures contracts entered into by the investment manager on behalf of the client, does not exceed 15% of total amount of funds so deposited with the manager.

“(3) For the purposes of subparagraph (2) (d) (iii), (e) (iv) or (f) (iii):

(a) where a futures contract cancels another futures contract, the value of both contracts must be disregarded for the purpose of calculating the total value of the futures contracts referred to in that subparagraph; and

(b) where, but for this subregulation:

(i) the value of a futures contract (in this paragraph called ‘the proposed contract’) if entered into would exceed the limit imposed by that subparagraph; and

(ii) the proposed contract would comply with the requirements of the subparagraphs preceding that subparagraph; and

(iii) the proposed contract, if entered into, would cancel another contract;

the limit imposed by that subparagraph does not apply to the proposed contract.

“(4) For the purposes of subregulation (3), a futures contract to sell cancels an earlier futures contract to buy (and vice versa) where both contracts:

(a) relate to:

(i) the same type and amount of subject matter; and

(ii) the same month; and

(b) are entered into:

(i) in the case of futures contracts referred to in paragraph (2) (d)—on behalf of the holders of prescribed interests under the deed; or

(ii) in the case of futures contracts referred to in paragraph (2) (e)—on behalf of depositors in relation to that fund; or

(iii) in the case of futures contracts referred to in paragraph (2) (f)—on behalf of the same client.

Schedule 1

6. Schedule 1 to the Principal Regulations is repealed and the following Schedule substituted:

SCHEDULE 1 Regulation 11

RECOGNISED FUTURES EXCHANGES

The Baltic Futures Exchange (BFE)

Board of Trade of the City of Chicago (CBOT)

Board of Trade of Kansas City, Missouri, Inc.

Chicago Mercantile Exchange (CME)

Chicago Rice and Cotton Exchange

Coffee, Sugar and Cocoa Exchange, Inc.

Commodity Exchange Inc. (COMEX)

Hong Kong Futures Exchange Ltd (HKFE)

The International Futures Exchange (Bermuda) Ltd. (INTEX)

The International Petroleum Exchange of London Ltd. (IPE)

London Futures and Options Exchange (FOX)

The London International Financial Futures Exchange Ltd. (LIFFE)

Marche a Terme International de France (The French International Futures Market) (MATIF)

The Metal Market and Exchange Company Ltd. (London Metal Exchange) (LME)

Mid America Commodity Exchange (MIDAM)

Minneapolis Grain Exchange

The Montreal Exchange (ME)

New York Cotton Exchange (NCE)

New York Futures Exchange, Inc. (NYFE)

New York Mercantile Exchange (NYMEX)

New Zealand Futures Exchange Ltd. (NZFE)

Osaka Securities Exchange (OSE)

Philadelphia Stock Exchange (PHLX)

Philadelphia Board of Trade

The Singapore International Monetary Exchange Limited (SIMEX)

Swiss Options and Financial Futures Exchange (SOFFEX)

Tokyo Commodity Exchange for Industry (TOCOM)

Tokyo Grain Exchange

Tokyo International Futures Exchange (TIFFE)

Tokyo Stock Exchange (TSE)

The Toronto Futures Exchange (TFE)

The Winnipeg Commodity Exchange (WCE)

 

NOTES

1. Notified in the Commonwealth of Australia Gazette on 27 February 1990.

2. Statutory Rules 1986 No. 150 as amended by 1987 No. 111; 1988 No. 341; 1989 Nos. 300 and 371.

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